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Unemployment Claims Show More Jobs Are Vanishing: Live Updates Unemployment Claims Show More Jobs Are Vanishing: Live Updates
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Stocks fell for a third day in a row on Thursday, adding to a downdraft that has come as Wall Street investors have been forced to confront what they were able to ignore for so long: The coronavirus will have a lasting effect on people and the economy.Stocks fell for a third day in a row on Thursday, adding to a downdraft that has come as Wall Street investors have been forced to confront what they were able to ignore for so long: The coronavirus will have a lasting effect on people and the economy.
The retreat this week has come as investors first heard from Dr. Anthony S. Fauci about the serious risk of a new outbreak if the economy is reopened too quickly, and then from Federal Reserve chair, Jerome H. Powell, who warned of permanent damage to the economy if Congress and the White House do not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.The retreat this week has come as investors first heard from Dr. Anthony S. Fauci about the serious risk of a new outbreak if the economy is reopened too quickly, and then from Federal Reserve chair, Jerome H. Powell, who warned of permanent damage to the economy if Congress and the White House do not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.
Adding to the pressure on markets, the U.S. government said Thursday that nearly three million people filed unemployment claims last week — a larger than expected tally that brings the two-month total to more than 36 million.Adding to the pressure on markets, the U.S. government said Thursday that nearly three million people filed unemployment claims last week — a larger than expected tally that brings the two-month total to more than 36 million.
The S&P 500 fell more than 1 percent in early trading Thursday, following sharp drops in Europe and Asia. The recent declines mean this week could be the worst for U.S. stocks since mid-March, although it isn’t nearly as dramatic as it was then. The S&P 500 is down just over 4 percent this week, compared with a 15 percent drop in the week ended March 20.The S&P 500 fell more than 1 percent in early trading Thursday, following sharp drops in Europe and Asia. The recent declines mean this week could be the worst for U.S. stocks since mid-March, although it isn’t nearly as dramatic as it was then. The S&P 500 is down just over 4 percent this week, compared with a 15 percent drop in the week ended March 20.
That’s in part because unprecedented efforts by the Federal Reserve and lawmakers in Washington, including a $2 trillion economic rescue package, have helped calm investors’ nerves.That’s in part because unprecedented efforts by the Federal Reserve and lawmakers in Washington, including a $2 trillion economic rescue package, have helped calm investors’ nerves.
Delta Air Lines plans to retire all its Boeing 777 jets, a fleet that helped it become a global airline, as it prepares to shrink its network for up to three years to ride out what is expected to be a long and choppy recovery, especially for international travel.Delta Air Lines plans to retire all its Boeing 777 jets, a fleet that helped it become a global airline, as it prepares to shrink its network for up to three years to ride out what is expected to be a long and choppy recovery, especially for international travel.
“Retiring a fleet as iconic as the 777 is not an easy decision; I know it has a direct impact on many of you who fly, crew and service these jets,” Delta’s chief executive, Ed Bastian, told employees in a note. “The 777 played an important role with Delta since 1999, allowing us to open new long-haul markets and grow our international network as we transformed into a global airline.”“Retiring a fleet as iconic as the 777 is not an easy decision; I know it has a direct impact on many of you who fly, crew and service these jets,” Delta’s chief executive, Ed Bastian, told employees in a note. “The 777 played an important role with Delta since 1999, allowing us to open new long-haul markets and grow our international network as we transformed into a global airline.”
Delta said it would retire its 18 wide-body 777s by the end of the year. Once demand for international travel recovers, the airline plans to use newer, more fuel-efficient aircraft on long flights.Delta said it would retire its 18 wide-body 777s by the end of the year. Once demand for international travel recovers, the airline plans to use newer, more fuel-efficient aircraft on long flights.
Delta is losing about $50 million a day, a figure that it hopes to bring to zero by the end of the year. It has already moved up plans to retire two other fleets, the MD-88 and MD-90, and has idled more than 650 jets in all.Delta is losing about $50 million a day, a figure that it hopes to bring to zero by the end of the year. It has already moved up plans to retire two other fleets, the MD-88 and MD-90, and has idled more than 650 jets in all.
Other airlines have made similar decisions, choosing to let go of older planes years ahead of schedule in anticipation of a slow, painful recovery. Delta has paid out $1.2 billion in ticket refunds since the crisis began, and more than 41,000 employees have agreed to take some form of unpaid leave of absence.Other airlines have made similar decisions, choosing to let go of older planes years ahead of schedule in anticipation of a slow, painful recovery. Delta has paid out $1.2 billion in ticket refunds since the crisis began, and more than 41,000 employees have agreed to take some form of unpaid leave of absence.
Fatih Birol, the chief of the International Energy Agency, said on Thursday that he saw “signs of a gradual rebalancing” in the oil market that has been ravaged by the coronavirus pandemic, but that the process of bringing supply in line with demand was still “fragile.”Fatih Birol, the chief of the International Energy Agency, said on Thursday that he saw “signs of a gradual rebalancing” in the oil market that has been ravaged by the coronavirus pandemic, but that the process of bringing supply in line with demand was still “fragile.”
Mr. Birol, discussing the agency’s monthly report, said that this year would most likely prove to be “the worst” in history for the oil market, with April probably the worst month.Mr. Birol, discussing the agency’s monthly report, said that this year would most likely prove to be “the worst” in history for the oil market, with April probably the worst month.
Global demand for oil fell in April to about 25 percent below its normal level, the agency said, but is expected to slowly recover as more countries ease lockdown measures. The agency estimated that by the end of May, 2.8 billion people would be living under “some form of confinement,” down from a peak of four billion people.Global demand for oil fell in April to about 25 percent below its normal level, the agency said, but is expected to slowly recover as more countries ease lockdown measures. The agency estimated that by the end of May, 2.8 billion people would be living under “some form of confinement,” down from a peak of four billion people.
At the same time, oil producers are making deeper and more rapid supply cuts than some analysts had expected. The agency forecast that demand may substantially outpace supply in the second half of this year, working off some of the massive glut that has built up.At the same time, oil producers are making deeper and more rapid supply cuts than some analysts had expected. The agency forecast that demand may substantially outpace supply in the second half of this year, working off some of the massive glut that has built up.
Oil prices have recovered in recent days with Brent crude, the international benchmark, trading around $30 a barrel, well above its low of about $19 a barrel in late April but still down more than 50 percent for the year. The American standard, West Texas Intermediate, which briefly fell into negative prices, is trading about $26 a barrel.Oil prices have recovered in recent days with Brent crude, the international benchmark, trading around $30 a barrel, well above its low of about $19 a barrel in late April but still down more than 50 percent for the year. The American standard, West Texas Intermediate, which briefly fell into negative prices, is trading about $26 a barrel.
Mr. Birol praised Saudi Arabia’s recent decision to cut an additional one million barrels a day beyond an agreement made on April 12, when OPEC members, Russia and other major producers agreed to 9.7 million barrels a day in cuts. The United Arab Emirates and Kuwait have also said they will chip in with modest trims.Mr. Birol praised Saudi Arabia’s recent decision to cut an additional one million barrels a day beyond an agreement made on April 12, when OPEC members, Russia and other major producers agreed to 9.7 million barrels a day in cuts. The United Arab Emirates and Kuwait have also said they will chip in with modest trims.
Almost three million people filed unemployment claims last week, the Labor Department reported Thursday, bringing the two-month tally to more than 36 million.Almost three million people filed unemployment claims last week, the Labor Department reported Thursday, bringing the two-month tally to more than 36 million.
Although the weekly count of new claims has been declining since late March, job losses from the coronavirus pandemic continue to mount.Although the weekly count of new claims has been declining since late March, job losses from the coronavirus pandemic continue to mount.
Michelle Meyer, head of U.S. economics at Bank of America, said that even with businesses reopening in some states, she doubted that callbacks to work outnumbered additional layoffs from other sectors. The slowdown has been rippling beyond the early shutdowns in retail and hospitality to professional business services, manufacturing and health care.Michelle Meyer, head of U.S. economics at Bank of America, said that even with businesses reopening in some states, she doubted that callbacks to work outnumbered additional layoffs from other sectors. The slowdown has been rippling beyond the early shutdowns in retail and hospitality to professional business services, manufacturing and health care.
“In a sense, it’s a rolling shock,” she said.“In a sense, it’s a rolling shock,” she said.
Jerome H. Powell, the Federal Reserve chair, said Wednesday that Fed research being released Thursday would show that in households making less than $40,000 a year, about 40 percent of those working in February lost their jobs in March.Jerome H. Powell, the Federal Reserve chair, said Wednesday that Fed research being released Thursday would show that in households making less than $40,000 a year, about 40 percent of those working in February lost their jobs in March.
State unemployment insurance and emergency federal relief were supposed to tide households over during the shutdown. But several states have a backlog of claims, and applicants continue to complain of being unable to reach overloaded state agencies.State unemployment insurance and emergency federal relief were supposed to tide households over during the shutdown. But several states have a backlog of claims, and applicants continue to complain of being unable to reach overloaded state agencies.
According to a poll for The New York Times in early May by the online research firm SurveyMonkey, more than half of those applying for unemployment benefits in recent weeks were unsuccessful.According to a poll for The New York Times in early May by the online research firm SurveyMonkey, more than half of those applying for unemployment benefits in recent weeks were unsuccessful.
Homeowners who have temporarily paused their federally backed mortgages because of virus-related hardships have been wondering if they could push those missed payments to the end of their loan. On Wednesday, federal regulators provided an answer: Yes.
Borrowers who reach their final payoff date and still owe the unpaid amount will have to pay it in a lump sum at that time, according to the Federal Housing Finance Agency, which oversees mortgages guaranteed by Fannie Mae and Freddie Mac. If they sell or refinance their homes, they’ll have to pay what they owe then.
Under the CARES Act, homeowners whose mortgages are backed by the federal government are permitted to skip their payments for up to a year.
Homeowners owe the skipped amount in full, and the agency is encouraging borrowers to pay it as soon as they’re able. But even if they have to push the payment to the end of their loan, homeowners will not be charged extra fees or interest on the balance.
There is one caveat: Housing officials said borrowers who were not current on their loans, or were more than 31 days delinquent before March 1, will not be eligible.
Government-sponsored entities will also pay property taxes and homeowners insurance if the borrower can’t afford to. But those amounts must also be repaid along with the missed loan payments.
A few months ago, everything seemed to be going Elon Musk’s way.A few months ago, everything seemed to be going Elon Musk’s way.
After a turbulent start to 2019, Tesla, the electric car company he co-founded, had reported profits two quarters in a row and its stock was surging. Mr. Musk claimed vindication by defeating a defamation lawsuit and was staying out of trouble on Twitter. Tesla was on a tear.After a turbulent start to 2019, Tesla, the electric car company he co-founded, had reported profits two quarters in a row and its stock was surging. Mr. Musk claimed vindication by defeating a defamation lawsuit and was staying out of trouble on Twitter. Tesla was on a tear.
But the coronavirus set Mr. Musk off. His dreams of dominating the car industry were put on hold when Alameda County, Calif., forced Tesla’s Fremont plant, which brings in most of the company’s revenue, to shut down in late March.But the coronavirus set Mr. Musk off. His dreams of dominating the car industry were put on hold when Alameda County, Calif., forced Tesla’s Fremont plant, which brings in most of the company’s revenue, to shut down in late March.
That frustrated Mr. Musk, who had long dismissed the seriousness of the coronavirus — promoting unproven research, suggesting that Covid-19 deaths were overstated and predicting that there would be zero new cases in the United States by the end of April. (There were almost 32,000.)That frustrated Mr. Musk, who had long dismissed the seriousness of the coronavirus — promoting unproven research, suggesting that Covid-19 deaths were overstated and predicting that there would be zero new cases in the United States by the end of April. (There were almost 32,000.)
His anger boiled over last week, as he threatened to move the factory out of California and sued the county in federal court, Niraj Choksi reports. This week, Mr. Musk officially reopened the plant, to the frustration of some workers and county officials who had been negotiating a reopening plan with Tesla for weeks.His anger boiled over last week, as he threatened to move the factory out of California and sued the county in federal court, Niraj Choksi reports. This week, Mr. Musk officially reopened the plant, to the frustration of some workers and county officials who had been negotiating a reopening plan with Tesla for weeks.
As the plant reopened, Mr. Musk thanked employees for making “the factory come back to life.”As the plant reopened, Mr. Musk thanked employees for making “the factory come back to life.”
“I have vastly more respect for someone who takes pride in doing a good job,” he said in an email, “whatever the profession, than some rich or famous person who does nothing useful.”“I have vastly more respect for someone who takes pride in doing a good job,” he said in an email, “whatever the profession, than some rich or famous person who does nothing useful.”
Shares of the Japanese electronics and entertainment giant Sony closed nearly 4 percent lower on Thursday following its announcement the day before that its operating profits could fall by 30 percent or more in the current fiscal year.Shares of the Japanese electronics and entertainment giant Sony closed nearly 4 percent lower on Thursday following its announcement the day before that its operating profits could fall by 30 percent or more in the current fiscal year.
The coronavirus has hit Sony’s electronics business hard, while giving a boost to some of its entertainment offerings, as people stuck at home seek to keep themselves busy.The coronavirus has hit Sony’s electronics business hard, while giving a boost to some of its entertainment offerings, as people stuck at home seek to keep themselves busy.
But the strength of the company’s film and music properties was not enough to offset the damage the pandemic has wrought: The company recorded a 57 percent drop in operating profits to 35.4 billion yen in the three months ending in March, Sony said in its annual earnings report released on Wednesday.But the strength of the company’s film and music properties was not enough to offset the damage the pandemic has wrought: The company recorded a 57 percent drop in operating profits to 35.4 billion yen in the three months ending in March, Sony said in its annual earnings report released on Wednesday.
Annual operating profit fell 5 percent to 845.5 billion yen from the previous year, it said.Annual operating profit fell 5 percent to 845.5 billion yen from the previous year, it said.
Some of the company’s new movie and music releases have been pushed back because of the pandemic, and ticket sales are down as theaters remain closed. The damage has been offset by increased streaming, the company said, with revenues from its music and pictures segments growing year on year in the three-month period that ended in March.Some of the company’s new movie and music releases have been pushed back because of the pandemic, and ticket sales are down as theaters remain closed. The damage has been offset by increased streaming, the company said, with revenues from its music and pictures segments growing year on year in the three-month period that ended in March.
J.C. Penney, the department-store chain that was founded in 1902, might file for bankruptcy as soon as Friday after skipping two interest payments on its debt in the past month, according to two people familiar with the matter.J.C. Penney, the department-store chain that was founded in 1902, might file for bankruptcy as soon as Friday after skipping two interest payments on its debt in the past month, according to two people familiar with the matter.
The company is in talks to secure about $450 million in debtor-in-possession financing, which would allow it to keep operating the business, according to the people, who spoke on condition of anonymity because discussions were confidential. The company declined to comment.The company is in talks to secure about $450 million in debtor-in-possession financing, which would allow it to keep operating the business, according to the people, who spoke on condition of anonymity because discussions were confidential. The company declined to comment.
The people said that the filing date could change, and that the amount of financing was still being negotiated. It would follow last week’s bankruptcy filing from the Neiman Marcus Group, as department stores struggle to navigate their businesses through the coronavirus pandemic.The people said that the filing date could change, and that the amount of financing was still being negotiated. It would follow last week’s bankruptcy filing from the Neiman Marcus Group, as department stores struggle to navigate their businesses through the coronavirus pandemic.
J. Crew also filed for bankruptcy last week. A filing from J.C. Penney, however, would be the biggest bankruptcy yet during the pandemic, based on its number of locations and workers. The retailer, which is based in Plano, Texas, has 846 stores in the United States and Puerto Rico and 90,000 employees.J. Crew also filed for bankruptcy last week. A filing from J.C. Penney, however, would be the biggest bankruptcy yet during the pandemic, based on its number of locations and workers. The retailer, which is based in Plano, Texas, has 846 stores in the United States and Puerto Rico and 90,000 employees.
J.C. Penney skipped a $12 million interest payment due last month, saying at the time that it was a “strategic decision” in order to take advantage of a 30-day grace period before it was considered in default. The deadline for that would be Friday. The chain also skipped a $17 million interest payment due on May 7, with a grace period of five business days. The deadline to make that payment also appears to be Friday.J.C. Penney skipped a $12 million interest payment due last month, saying at the time that it was a “strategic decision” in order to take advantage of a 30-day grace period before it was considered in default. The deadline for that would be Friday. The chain also skipped a $17 million interest payment due on May 7, with a grace period of five business days. The deadline to make that payment also appears to be Friday.
Reporting was contributed by Patricia Cohen, Tiffany Hsu, Stanley Reed, Niraj Chokshi, Li Yuan, Ben Dooley, Carlos Tejada, Jeanna Smialek, Jim Tankersely, Matt Phillips, Sapna Maheshwari, Michael J. de la Merced and Kevin Granville. Reporting was contributed by Patricia Cohen, Tiffany Hsu, Stanley Reed, Niraj Chokshi, Li Yuan, Ben Dooley, Carlos Tejada, Jeanna Smialek, Tara Siegel Bernard Jim Tankersely, Matt Phillips, Sapna Maheshwari, Michael J. de la Merced and Kevin Granville.